Ipa- please help so stressed

cmb321

Hi everyone,
Ive been so stressed all day. have recieved a letter from the Or about the IPA. It says i agree to pay the amount in whcih my take home pay will increase as a result of the NT coding and they have estimated it at 310.00 permonth. What does this mean we can't afford that is it to do with not paying your tax of something? please help. so worried

Thanks
Carla

Feelingfoolish_3

Hiya
From what I have read on here then Im guessing that when your tax code reduces to nil then the excess you will have would have been the tax that you pay which is roughly £310 per month?

It just means that you pay the tax directly to the OR instead of the tax man.

Someone will be along to confirm this shortly.

peachyprice

It's nothing to worry about and won't cost you anything.
All it means is instead of paying tax on your salary the money will go to the OR instead.

When you next get paid you should have more money than usual, a company called Moon Beever will contact you shortly to set up a direct debit for you to pay the extra money to them instead.

HTH

cmb321

thankyou so much

yes OR said moon beever will be in touch shortly. So when the tax cod is nt should i save that money for moon beever?

thankyou

damoandclaire

when my tax code changed, i still paid tax or should I say, deductions were still made, just not to the tax man. I presume this went to the OR.

One thing the IS said was that if the NT coding doesn't get applied, you carry on paying tax and NI as normal, they will simply claim it back at year end.

It doesn't cost you anything and you don't have to pay anything manually.

peachyprice

cmb321 wrote: »

thankyou so much

yes OR said moon beever will be in touch shortly. So when the tax cod is nt should i save that money for moon beever?

thankyou

Yes, as soon as you stop paying tax keep the extra money to one side, sometimes it can take a while for moon beever to set things up.

This will only last until the end of this tax year, after that your code should go back to normal.

Captain_Longbeard

This will only last until the end of this tax year, after that your code should go back to normal

I also understand if you change jobs in the current tax year then the NT code ends - though can't be certain of that - maybe someone else can claify

Either way, you won't be expected to pay the 310 out of your own pocket. As I understand there are 2 types of IPA/IPO - the ones where you pay something from your "surplus" (a "regular IPA/IPO") and the ones where there is no surplus, so you don't pay tax and it comes from that (a "nil-tax" or "NT" IPA/IPO) - the OR should have explained?... someone with more experience may be able to confirm... but don't panic....

debtinfo

Yes exactly as longbeard says, if you change job you will be given a new tax code and HMRC wil resume collecting it at source

out_of_cash

isnt there also the little up to 70% of earnings after they have agreed what they think you should live on, so say all living expences are 900 per month and your take home pay is £2000 per month they would take 70% of £1100? on know this is on a sliding scale but you can see what i mean.i hope;)